Institutional adoption and regulatory clarity are driving a new era of blockchain-based financial integration, according to a new BNY report.
Stablecoins and tokenized cash instruments could expand to nearly $3.6 trillion by 2030, according to a report released by financial powerhouse BNY. The study points to growing institutional adoption and progressive regulation as the primary forces shaping the next phase of digital finance.
The bank estimates that stablecoins alone may reach a $1.5 trillion market cap by the end of the decade, while tokenized deposits and money market funds (MMFs) could make up the remainder. These assets, collectively referred to as “digital cash equivalents,” are expected to accelerate settlement times, reduce counterparty risk, and improve liquidity across global markets.
“We stand at a powerful inflection point that may fundamentally transform how global capital markets function and how participants transact,” said Carolyn Weinberg, BNY’s chief product and innovation officer.
The report suggests that the rise of tokenized U.S. Treasuries, bank deposits, and MMFs could allow institutions to optimize collateral management and streamline reporting. For instance, a pension fund could soon use a tokenized money market fund to post derivatives margin in real time — a process that today might take several days through traditional banking systems.
BNY emphasized that blockchain technology will not replace traditional finance, but rather integrate and operate alongside existing infrastructure.
“The combination of traditional and digital has the potential to be a powerful unlock for our clients and the world,” Weinberg added.
The report also highlighted the importance of regulatory progress. BNY pointed to Europe’s Markets in Crypto-Assets (MiCA) framework and policy advancements in the U.S. and Asia-Pacific as evidence that regulators are increasingly open to digital financial innovation.
If realized, BNY’s $3.6 trillion forecast would represent one of the largest shifts in modern financial architecture — bridging traditional markets with blockchain-powered efficiency.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.